Shrink Film for Beverage Packaging Market

Market overview:

Shrink Film for Beverage Packaging Market is expected grow with remarkable speed during forecasted period with CAGR of 4.8%. In 2023 Shrink Film for Beverage Packaging Market was valued at USD 4.8 billion and it is projected to grow to USD 7.5 billion by 2032. The growth of the market is due to the increasing demand for shrink films for beverage packaging, which has beer, water, carbonated soft drinks, and other applications across the globe. This type of packaging is lightweight, durable and visually appealing. Compared to rigid packaging, these shrinkable beverage packages reduce beverage transportation costs and are easier to transport.

In 2023 Shrink Film for Beverage Packaging Market was valued at USD 4.8 billion and it is projected to grow to USD 7.5 billion by 2032 with CAGR of 4.8%

Shrink Film for Beverage Packaging Market

Size, by Product, - (USD Billion)

Printed Shrink Film

Unprinted Shrink Film

Other Products

The Market will Grow

At the CAGR of:

4.8%

The Forecast Market

Size for in USD:

$7.5 BillionB

Key Players:

1. Berry Plastics Corporation
2. RKW, Amcor
3. TC Transcontinental
4. Sigma Plastics
5. Clondalkin
6. Poly Rafia
7. Crayex Corporation
8. Plastotecnica
9. Linyi Yuanhao 
10. AEP Industries Inc.
11. Amcor Limited
12. Bemis Company, Inc.
13. Coveris Holdings S.A.
14. Plastotecnica SpA (Italy)
15. Clearpack group (Singapore)
16. Sarkina (US)
17. Baroda Packaging (India)
18. Brentwood Plastic, Inc (US)
19. Aintree Plastics Ltd. (UK)

20. Elite Plastics Ltd. (UK)

    Shrink Film for Beverage Packaging Market

    Share, by end user, (USD Billion)

    %

    Alcohol Companies

    CSD Companies

    Water Bottle Manufacturer

    Other End-Users

    

    Total Market Size

    USD (Billion),

    4.8%

    CAGR

    -

Market segmentation:

By Type:

Printed Shrink Film

Unprinted Shrink Film

By Application:

Beer 

Water

Carbonated Soft Drinks 

Others

Segmentation by Type:

Printed Shrink Film: This category encompasses shrink film solutions that incorporate various printing techniques to display branding elements, logos, nutritional information, or promotional messages directly onto the film itself.

Unprinted Shrink Film: This category consists of shrink film that remains unprinted, offering a more fundamental and cost-effective packaging solution.

Segmentation by Application:

Beer: Specific shrink film formulations are meticulously designed to address the condensation that can form on beer bottles. These films often possess superior moisture resistance properties to maintain package integrity and prevent label damage. Additionally, multipack configurations utilizing printed shrink film are popular for promoting various beer brands and encouraging larger purchases by consumers.

Water: Water bottlers frequently prioritize cost-effectiveness and clarity when selecting shrink film. Unprinted film solutions are commonly used for single-serve water bottles or bulk packaging applications. Sustainability considerations are becoming increasingly important within the water packaging segment. Manufacturers are actively developing shrink film solutions made from recycled materials or with properties that enhance recyclability.

Carbonated Soft Drinks (CSDs): Similar to beer, condensation resistance is a crucial factor for shrink film used in CSD packaging. Brightly colored or printed shrink film can be particularly effective for CSDs, grabbing consumer attention on store shelves and highlighting brand identity.

Other Beverage Applications: This segment encompasses a diverse array of beverage types, including sports drinks, juices, energy drinks, and tea. The specific shrink film choice hinges on the beverage type, packaging configuration (single-serve versus multipack), and desired functionalities (e.g., tamper evidence, printability).

Shrink Film for Beverage Packaging Market

Size, by Product, - (USD Billion)

The Market will Grow

At the CAGR of:

4.8%

The Forecast Market

Size for in USD:

$7.5 BillionB

Market Growth Factors & Trends:

Consumer demand for sustainable practices: Growing environmental responsibility influences consumer purchasing decisions. This trend means a significant increase in demand for sustainable packaging solutions in the shrink film market. Therefore, the use of bio-based and recyclable shrink films is significantly increasing.

Bio-based shrinkable films: These films are derived from renewable natural resources such as corn starch, cellulose or vegetable oils. By offering a biodegradable alternative to traditional oil-based shrink films, they minimize the environmental impact of packaging waste.

Recyclable shrink films: Advances in materials science have facilitated the development of recyclable shrink films. These films can be effectively recycled into new products after use, which promotes a circular economy and reduces dependence on new materials. This approach promotes a more sustainable packaging life cycle.

Modified Atmosphere Packaging (MAP): Integrating MAP technology into the film package allows precise control of the gas composition in the package. It creates an environment specifically adapted to optimize the shelf life and quality of perishable products. By manipulating oxygen and carbon dioxide levels, MAP increases product freshness and minimizes spoilage.

Intelligent packaging systems. Incorporating smart features into a shrink wrap is another emerging trend. These features may include:

Time and Temperature Indicators: These indicators visually indicate potential product deterioration due to changes in color or appearance due to temperature fluctuations, allowing consumers to make informed purchasing decisions.

Radio Frequency Identification (RFID) Tags: Integration of RFID tags facilitates real-time tracking of product location, temperature and other parameters throughout the supply chain. This increases transparency and streamlines logistics processes.

Multipack Solutions: The use of shrink films in multipacks is gaining significant traction. This approach offers many benefits, including:

Better product presentation: Multi-pack configurations create a more visually appealing presentation that effectively captures consumers' attention on store shelves and promotes brand awareness.

Improved Product Security: Shrink wrap effectively bundles products together, proven to reduce the risk of tampering or tampering during transportation and storage.

Cost-effective packaging: multipacking with shrink wrap can be a more cost-effective solution compared to individually packaging each product, optimizing production costs.

Custom Packaging Design: Thanks to the inherent versatility of shrink film, it is well suited to creating custom packaging designs. Manufacturers are increasingly using high-quality printing techniques to incorporate branding elements, promotional messages and product information directly into the shrink film. This not only increases brand visibility, but also provides valuable communication channels to engage consumers at the point of purchase.

Opportunities:

Developing Bio-Based Shrink Films: These films are derived from renewable resources such as corn starch or sugarcane.  Their biodegradability offers a more environmentally friendly alternative to traditional petroleum-based shrink films, potentially attracting a wider range of environmentally conscious consumers.

Enhancing Recyclability: Investments in research and development to create more readily recyclable shrink film solutions can be highly beneficial.  This could involve exploring new film formulations or implementing innovative recycling technologies to improve post-consumer waste management.

Smart Packaging Technologies: Integrating smart technologies into beverage shrink wrap offers a promising opportunity for market expansion. 

Anti-counterfeiting features. Adding invisible markings or unique identifiers to shrink wrap can help combat counterfeiting, a growing problem in the beverage industry.

Temperature and Time Indicators: These indicators can visually indicate potential product deterioration by changing color or appearance due to temperature fluctuations or exceeding recommended storage times. This can improve consumer safety and reduce product loss.

Consumer Engagement Features: Zipper closure with integrated NFC tags allows consumers to access product information, promotional content or brand loyalty programs by tapping their smartphone on the package.

Shrink Film for Beverage Packaging Market TO (USD BN)

CAGR OF

4.8%

Shrink Film for Beverage Packaging Market

7.5 Billion%

Restraints:

Rising costs and global market forces: A major challenge for manufacturers in the shrinking plastic packaging market is rising prices of raw materials such as polyethylene and polypropylene. 

Greater Environmental Concern and Regulatory Scrutiny: Growing concern about plastic pollution is forcing regulators to impose stricter rules on the use of plastic materials. 

R&D: Developing new environmentally friendly shrink solutions or manufacturing processes can be challenging.

Fierce competition and price wars: The plastic packaging market is characterized by intense competition between key players. Such a competitive environment can lead to price wars, where manufacturers lower prices to gain market share.

Maintaining profitability: Bad competition can put significant pressure on shrinking film producers' profit margins. With high competition maintaining high profit is challenging.